Uncovering Hidden High-Yield Dividends That Elude Stock Screens

When it comes to dividend investing, common stock screens may not always capture the full picture, especially when it comes to 'special' dividends which often go unnoticed by Wall Street. This oversight provides a unique advantage for contrarian investors searching for income opportunities that many miss. Special dividends are atypical payouts that companies distribute to shareholders, alongside regular dividends, and are not always reflected in mainstream financial databases, leading to an underappreciation of a stock's total yield potential.

Special Dividends: The Stealthy Income Boosters

For instance, DDS – Dillard's, Inc., a major retailer with a presence across the Southeast, Southwest, and Midwest regions of the United States, may offer special dividends that enhance the overall yield for its shareholders. By failing to account for these additional payouts, many stock screens undervalue the real income that investors could earn.

Nitrogen-Rich Dividends from UAN

UAN, or CVR Partners, LP, operates within the fertilizer industry and distributes nitrogen-based products primarily across the United States. Special dividend opportunities from such companies in the materials sector may provide a hidden yield that eludes the average investor not paying close attention to these exceptional distributions.

TCPC: A Potential Income Gem in Plain Sight

Similarly, companies like TCPC can periodically declare special dividends, offering an uptick in the income stream for savvy investors who include such stocks in their portfolios. Recognizing and capitalizing on these overlooked dividends could lead to an under-the-radar buildup of wealth.

It is crucial for income-focused investors to conduct thorough research or tap into specialized financial analysis that digs deeper than conventional stock screens, to fully uncover the real income-generating potential of a stock. Doing so may reveal yields that are significantly higher than what appears at first glance, thanks to these undercounted special dividends which can reach up to an impressive 16%.

dividend, investment, yield